Hemispherx Biopharma Inc (HEB, Financial) filed Quarterly Report for the period ended 2009-06-30.
Hemispherx Biopharma Inc. is a biopharmaceutical company engaged in the manufacture and clinical development of new drug entities for treatment of seriously debilitating disorders. Hemispherx\'s flagship products include Alferon N Injection and the experimental therapeutics Ampligen and Oragens. Alferon N Injection is approved for a category of STD infection and Ampligen and Oragens represent a large portfolio experimental RNA nucleic acids being developed for globally important viral diseases severely debilitating disorders and biodefense applications. Hemispherx\'s platform technology includes large and small agent components for potential treatment of various severely debilitating and life threatening diseases. The Company is actively engaged in further expansion of its intellectual property on a world wide basis to reflect the global distribution of the various disorders which its platform technologies address. Hemispherx Biopharma Inc has a market cap of $231.3 million; its shares were traded at around $2.09 with and P/S ratio of 872.83. Hemispherx Biopharma Inc had an annual average earning growth of 9.4% over the past 5 years.
Interest and other income for the three months ended June 30, 2009 and 2008 was $109,000 and $328,000, respectively, representing a decrease of $219,000 or 67%. The primary causes for the decrease in 2nd Quarter of 2009 was a $368,000 in reduced investment income resulting from lower available interest rates. This interest income reduction was offset by a net realized gain of $149,000 that arose from the occurrence of two events: a) in the three months ended June 2009 equipment was disposed at a gain of $84,000; and b) an equipment value impairment write-down of $65,000 occurred during the first three months of 2008.
Overall research and development costs for the six months ended June 30, 2009 were $3,577,000 as compared to $2,467,000 for the same period a year ago reflecting an increase of $1,110,000 or 45%. The first six months of 2009 s Research and Development costs include the book value abandonment expense write-off of $115,000 for 24 patents that Management deemed no longer of value or material to future operations. Additionally for the six months ended June 30, 2009, $545,000 of incremental non-cash labor expenses were attributed to Research and Clinical employees participating in the Employee Wage Or Hour Reduction Program (see “Liquidity and Capital Resources; Employee Wage Or Hours Reduction Program” below for details on the Employee Wages Or Hours Reduction Program) and 2009 bonus awards of $450,000 in relationship to achieving 2008 corporate goals and objectives.
General and Administrative (“G&A”) expenses for the six months ended June 30, 2009 and 2008 were approximately $3,028,000 and $3,687,000, respectively, reflecting a decrease of $659,000 or 18%. This decrease relates primarily to a reduction in all areas of expenses due to reduced legal fees of $685,000, stock compensation of $218,000, accounting consultants and fees of $100,000, decease in personnel for a savings of $120,000 along with a savings of $74,000 in general costs. This decrease also reflected 2008 refunds paid to customers for the return of expired Alferon® for $113,000. These cost savings were somewhat offset by an increase of $220,000 of incremental non-cash labor expenses resulting from General and Administrative employees participating in the Employee Wage Or Hour Reduction Program along with an increase $123,000 in stock filing and transfer fees and $308,000 in legal and professional fees in relation to the equity stock sales of May 2009.
Interest and other income for the six months ended June 30, 2009 and 2008 was $116,000 and $408,000, respectively, representing a decrease of $292,000 or 72%. The primary cause for the decrease in the six months ended June 30, 2009 were a $421,000 in reduced investment income resulting from lower available interest rates. This interest income reduction was offset by a net realized gain of $149,000 that arose from the occurrence of two events: a) in the six months ended June 2009 equipment was disposed at a gain of $84,000; and b) an equipment value impairment write-down of $65,000 occurred during the first six months of 2008.
Cash used in operating activities for the six months ended June 30, 2009 was $4,129,000 compared to $5,280,000 for the same period in 2008 a reduction of $1,151,000 or 21.8%. This reduction reflects lower expenditures primarily related to Management s cash conservation program that included reducing controllable expenses and utilizing our common stock where possible as payment to Board Members, employees, consultants and vendors. Cash provided (used) by investing activities during the six months ended June 30, 2009 and 2008 totaled ($1,135,000) and $3,951,000, respectively, primarily due to the 2009 purchase and 2008 maturity of short term investments. We had proceeds from financing activities of $39,802,000 and $-0- during the six months ended June 30, 2009 and 2008, respectively. As of June 30, 2009, we had approximately $41,657,000 in cash, cash equivalents and short-term investments, or an increase of approximately $35,538,000 from December 31, 2008.
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Hemispherx Biopharma Inc. is a biopharmaceutical company engaged in the manufacture and clinical development of new drug entities for treatment of seriously debilitating disorders. Hemispherx\'s flagship products include Alferon N Injection and the experimental therapeutics Ampligen and Oragens. Alferon N Injection is approved for a category of STD infection and Ampligen and Oragens represent a large portfolio experimental RNA nucleic acids being developed for globally important viral diseases severely debilitating disorders and biodefense applications. Hemispherx\'s platform technology includes large and small agent components for potential treatment of various severely debilitating and life threatening diseases. The Company is actively engaged in further expansion of its intellectual property on a world wide basis to reflect the global distribution of the various disorders which its platform technologies address. Hemispherx Biopharma Inc has a market cap of $231.3 million; its shares were traded at around $2.09 with and P/S ratio of 872.83. Hemispherx Biopharma Inc had an annual average earning growth of 9.4% over the past 5 years.
Highlight of Business Operations:
General and Administrative (“G&A”) expenses for the three months ended June 30, 2009 and 2008 were approximately $1,862,000 and $1,790,000, respectively, reflecting an increase of $72,000 or 4%. The primary causes of this increase were $115,000 of incremental non-cash labor expenses resulting from General and Administrative employees participating in the Employee Wage Or Hour Reduction Program, along with an increase of $123,000 in stock filing and transfer fees and $308,000 in legal and professional fees in relation to the equity stock sales of May 2009. These increased costs during the second quarter of 2009 were offset by reduced general legal fees for $323,000 and a decrease in personnel for a savings of $120,000 and an overall reduction of general costs for $29,000.Interest and other income for the three months ended June 30, 2009 and 2008 was $109,000 and $328,000, respectively, representing a decrease of $219,000 or 67%. The primary causes for the decrease in 2nd Quarter of 2009 was a $368,000 in reduced investment income resulting from lower available interest rates. This interest income reduction was offset by a net realized gain of $149,000 that arose from the occurrence of two events: a) in the three months ended June 2009 equipment was disposed at a gain of $84,000; and b) an equipment value impairment write-down of $65,000 occurred during the first three months of 2008.
Overall research and development costs for the six months ended June 30, 2009 were $3,577,000 as compared to $2,467,000 for the same period a year ago reflecting an increase of $1,110,000 or 45%. The first six months of 2009 s Research and Development costs include the book value abandonment expense write-off of $115,000 for 24 patents that Management deemed no longer of value or material to future operations. Additionally for the six months ended June 30, 2009, $545,000 of incremental non-cash labor expenses were attributed to Research and Clinical employees participating in the Employee Wage Or Hour Reduction Program (see “Liquidity and Capital Resources; Employee Wage Or Hours Reduction Program” below for details on the Employee Wages Or Hours Reduction Program) and 2009 bonus awards of $450,000 in relationship to achieving 2008 corporate goals and objectives.
General and Administrative (“G&A”) expenses for the six months ended June 30, 2009 and 2008 were approximately $3,028,000 and $3,687,000, respectively, reflecting a decrease of $659,000 or 18%. This decrease relates primarily to a reduction in all areas of expenses due to reduced legal fees of $685,000, stock compensation of $218,000, accounting consultants and fees of $100,000, decease in personnel for a savings of $120,000 along with a savings of $74,000 in general costs. This decrease also reflected 2008 refunds paid to customers for the return of expired Alferon® for $113,000. These cost savings were somewhat offset by an increase of $220,000 of incremental non-cash labor expenses resulting from General and Administrative employees participating in the Employee Wage Or Hour Reduction Program along with an increase $123,000 in stock filing and transfer fees and $308,000 in legal and professional fees in relation to the equity stock sales of May 2009.
Interest and other income for the six months ended June 30, 2009 and 2008 was $116,000 and $408,000, respectively, representing a decrease of $292,000 or 72%. The primary cause for the decrease in the six months ended June 30, 2009 were a $421,000 in reduced investment income resulting from lower available interest rates. This interest income reduction was offset by a net realized gain of $149,000 that arose from the occurrence of two events: a) in the six months ended June 2009 equipment was disposed at a gain of $84,000; and b) an equipment value impairment write-down of $65,000 occurred during the first six months of 2008.
Cash used in operating activities for the six months ended June 30, 2009 was $4,129,000 compared to $5,280,000 for the same period in 2008 a reduction of $1,151,000 or 21.8%. This reduction reflects lower expenditures primarily related to Management s cash conservation program that included reducing controllable expenses and utilizing our common stock where possible as payment to Board Members, employees, consultants and vendors. Cash provided (used) by investing activities during the six months ended June 30, 2009 and 2008 totaled ($1,135,000) and $3,951,000, respectively, primarily due to the 2009 purchase and 2008 maturity of short term investments. We had proceeds from financing activities of $39,802,000 and $-0- during the six months ended June 30, 2009 and 2008, respectively. As of June 30, 2009, we had approximately $41,657,000 in cash, cash equivalents and short-term investments, or an increase of approximately $35,538,000 from December 31, 2008.
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